Brazil - Spain Trade 2023 Q3: Resource-for-Tech Dynamic

Key Market Takeaways: Brazil - Spain Trade

The bilateral trade relationship between Brazil and Spain contracted sharply in Q3 2023, with both exports and imports declining year-over-year.

• Brazil maintains a strong trade surplus ($1.24B), exporting $2.25B in goods to Spain while importing $1.01B, but both flows saw double-digit YoY drops.
• Brazil - Spain trade statistics reveal a resource-for-tech dynamic: Brazil supplies mineral fuels and agricultural commodities (49% of exports), while Spain ships back refined fuels, machinery, and pharmaceuticals.
• Asymmetric but interdependent: Spain holds the higher value-add position, but Brazil’s raw material exports remain critical to Spain’s industrial and energy needs.

This bilateral trade snapshot is based on verified customs data from the yTrade database.

Brazil-Spain Trade Trend in Q3 2023

Brazil Export Performance: Shipments to Spain

• Total Volume: $2.25B in Q3 2023.
• Growth Trend & Context: YoY decline persisted across all months (-39.34% in Jul, -4.2% in Aug, -12.62% in Sep). No news-driven explanation available.
• Key Volatility: August saw a sharp 52.52% MoM surge, followed by a -7.88% correction in September.

Brazil Import Performance: Sourcing from Spain

• Total Volume: $1.01B in Q3 2023.
• Growth Trend & Context: YoY contractions deepened (-8.45% in Jul, -14.76% in Aug, -16.38% in Sep). No external factors cited.
• Key Volatility: August recorded the lowest monthly value ($316.22M) and steepest MoM drop (-11.86%).

Brazil - Spain Trade Balance & Market Dynamics

• Net Position: Brazil held a $1.24B trade surplus (Exports: $2.25B > Imports: $1.01B).
• Relationship Status: Strong net exporter role, though both trade flows contracted YoY.

Brazil Import Trend from Spain 2023 Q3 (Source: yTrade)**

Brazil Export Trend to Spain 2023 Q3 (Source: yTrade)**

Get Historical Brazil Spain Trade Records

Brazil-Spain Top Trading Products in Q3 2023

Brazil Export Profile: What Does Brazil Sell to Spain

• Top Commodity: Rank #1 export is HS 27 (Mineral fuels, oils, distillation products) at 49.16% of total exports to Spain.
• Demand Driver: Spain uses these for industrial processing and energy needs.
• Concentration: Trade is highly concentrated, with HS 27 alone accounting for nearly half of exports. Secondary exports (HS 10, 12, 23) suggest Spain also sources agricultural commodities (e.g., cereals, oilseeds) from Brazil.

Brazil Import Profile: What Does Brazil Buy from Spain

• Top Commodity: Rank #1 import is HS 27 (Mineral fuels, oils, distillation products) at 20.74%, followed by machinery (HS 84) and steel products (HS 73).
• Dependency Nature: Mixed imports—energy (HS 27), industrial machinery (HS 84), and pharmaceuticals (HS 30) indicate Brazil relies on Spain for both critical inputs and high-value goods.

Brazil - Spain Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Brazil supplies raw materials (fuels, crops) to Spain, while Spain exports refined fuels, machinery, and pharmaceuticals.
• Value Chain Position: Spain holds the higher value-add position, exporting processed goods (HS 84, 30) versus Brazil’s raw commodities (HS 27, 10, 12). The bilateral flow is asymmetric but interdependent.

Import Analysis by Product: Spain to Brazil (Source: yTrade)

Export Analysis by Product: Brazil to Spain (Source: yTrade)

Check Detailed Brazil-Spain Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

The Brazil-Spain trade relationship faces near-term headwinds, with both exports and imports likely to remain under pressure in Q4 2023. The persistent YoY declines in Brazil’s shipments to Spain (-39.34% in July, -12.62% in September) and deepening import contractions (-16.38% in September) suggest a period of consolidation rather than recovery. However, Brazil’s structural surplus ($1.24B in Q3) and Spain’s reliance on Brazilian raw materials (HS 27 at 49.16% of exports) provide a floor for trade volumes. Expect volatility in energy and agricultural commodity flows, with potential upside if Spain’s industrial demand rebounds.

Strategic Moves

• Lock in Energy Contracts: Brazilian exporters of mineral fuels (HS 27) should secure long-term supply agreements with Spanish buyers to stabilize revenue amid price fluctuations.
• Diversify Export Mix: Brazil must reduce reliance on HS 27 by promoting secondary exports like cereals (HS 10) and oilseeds (HS 12) to Spain, leveraging agricultural competitiveness.
• Target High-Value Imports: Brazilian importers should prioritize Spanish machinery (HS 84) and pharmaceuticals (HS 30) to upgrade domestic production capacity, offsetting the decline in fuel purchases.

Frequently Asked Questions

How did Brazil - Spain trade perform in 2023 Q3?

Brazil's exports to Spain totaled $2.25B, while imports were $1.01B, with both showing YoY declines (-39.34% to -16.38%).

What are the top exports from Brazil to Spain?

Brazil's top export to Spain is HS 27 (Mineral fuels, oils, distillation products), accounting for 49.16% of total exports, followed by agricultural commodities like cereals and oilseeds.

What does Brazil import from Spain?

Brazil primarily imports HS 27 (Mineral fuels, oils), machinery (HS 84), steel products (HS 73), and pharmaceuticals (HS 30) from Spain.

What is the trade balance between Brazil and Spain?

Brazil held a $1.24B trade surplus with Spain in Q3 2023, maintaining its strong net exporter role despite declining trade volumes.